Sears Canada’s plan to pay out millions in bonuses to keep key staff on board while not paying severance to laid-off workers is being met with shock and disbelief.

Ken Eady, who spent 30 years at Sears before retiring, said news of the bonuses was just the latest development in a terrible situation.

“To see people let go after 30 or 40 years of service, without any reasonable notice, or without any severance, and then to see people being paid what might be millions of dollars in bonuses for staying seems so out of balance and so unreasonable that it’s beyond the pale,” said Eady, who now works to protect the pensions of retired Sears employees at the independent SCRG retiree association.

Sears Canada got court permission on Thursday to pay $9.2 million in retention bonuses as part of a compromise with retired employees that will see the company continue making some benefit and pension payments until Sept. 30.

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The retailer had initially asked the court for permission to immediately halt payments for pension, health and dental benefits for laid off employees, retirees and surviving spouses due to a severe cash crunch.

Sears Canada spokesperson Joel Shaffer said the payments are common during the creditor protection process, and are designed to keep key employees motivated with performance indicators and incentives to successfully close stores.

He said the payments are designed to support the best possible outcome for the business and stakeholders, and that the situation could worsen without them.

Along with approving the deal between the company and former employees, Hainey also gave Sears Canada the green light to immediately proceed with reaching out to potential buyers while it’s under court protection from its creditors.

Sears Canada shocked many employees when it announced in June that it planned to close 59 locations across the country and cut approximately 2,900 jobs, without severance, while under the Companies’ Creditors Arrangement Act.

Employment lawyer Susan Ursel, whose firm represents more than 17,000 non-unionized former and current employees, said Thursday they continue to push for temporary hardship fund for those who are in dire need of cash and health benefits.